RE: The Team at Conduit19 Feb 2022 15:43
Hi, I think I outlined my view below, I am not sure what you want me to add to it. It is only my view. I encourage you and others to form your own views so I am grateful that you highlight this, but..
For myself, this is not something I am concerned about, if anything it is positive. CIZ as you say has cash cushion of 10 months which is quite a healthy cushion for a small cap. But even if we shaved two months off would it really matter? It is a tiny amount of working capital that the report refers to.
For this to be a problem we would have to assume they are not going to do anything or their overheads are going to rapidly increase. I don't think the company will remain static and not do anything. I think there will be more partnerships and royalty agreements and I believe we will hear of another fairly soon.
"Through various partnerships and collaborations, Cizzle is aiming to maximise the value of its lung cancer asset. The strategic alliance in China paves the way towards its test becoming available in the largest lung cancer market in the world, at little cost to the company. This deal represents another example of the company expanding its commercial opportunity and potentially accelerating its income streams."
I think if by year end we are debating working cap the price will be a lot higher than where it currently is.